Active-duty and reserve pay
Members on active duty for 90 consecutive days or more with military pay under $30,000 may subtract up to $15,000.
An E-5 with over 6 years of service earns $49,320 a year in basic pay, and an O-3 with over 6 years $92,844. In Virginia, that basic pay is generally part of state taxable income, apart from the exemptions above. Housing and food allowances are never taxed by any state.
Military retired pay
Up to $40,000 of military retired pay can be subtracted.
Your state of legal residence decides
Military pay is taxed by your state of legal residence, usually the state you lived in when you joined or one you later adopted by changing your records, not by the state where you are stationed. This comes from the Servicemembers Civil Relief Act. Spouses can choose to use the member's state of legal residence for their own income too.
See your total pay with state tax
Questions
Does Virginia tax military pay?
Virginia taxes most military pay, with some exemptions. Members on active duty for 90 consecutive days or more with military pay under $30,000 may subtract up to $15,000.
Does Virginia tax military retirement pay?
Up to $40,000 of military retired pay can be subtracted.
Is BAH taxed in Virginia?
No. BAH and BAS are not taxable income for federal or state tax in any state.
Which state taxes me if I am stationed in Virginia?
Under the Servicemembers Civil Relief Act, your military pay is taxed only by your state of legal residence, not the state where you are stationed. If Virginia is not your legal residence, Virginia does not tax your military pay.